Yellen's First Day: Does She See a Slowing Economy?

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Feb. 3 (Bloomberg) -- Michael McKee reports on Janet Yellen's first day on the job as Federal Reserve Chairman. McKee speaks on Bloomberg Television's "Bottom Line." (Source: Bloomberg)

About what they might ask for.

There was not consensus in the room.

Some talk about asking for more spending cuts, budget reforms, some wanting changes to the health care law dealing with insurance companies.

Others suggested maybe keystone xl, maybe push the president to approve that as part of an increase in the debt ceiling.

At the end of the day, a lot of republicans concede they do not have a lot of leverage.

They will probably have to accept a clean debt ceiling increase.

Time is running short.

There is a congressional recess in the middle of february that will complicate the timetable as well.

Peter cook, thank you.

The janet yellen era at the federal reserve is underway.

She officially starts return today as fed chair, the first woman to lead the u.s. central bank in its 100-year history.

Michael mckee is with me for what we could expect under a yellen fed.

History in the making, but are we going to see some of the same policies mr.

Bernanke had?

Madame chairwoman is expected to follow the same policies mr.

Chairman did until last friday.

She was sworn in today.

Her first official act will come next week when she goes to capitol hill to testify in front of congress.

She will give the economic outlook.

Nobody expects much in the way of a monetary policy outlook.

Tapering underway with no sign of rate hikes ahead.

Will she see the economy slowing down as data suggested?

We just had the senior loan officer survey from the fed.

That was better news.

They see increased demand for loans except for mortgages.

Banks are loosening lending a bit.

Given the data, we have to wonder whether the weather has slowed things down or there is a real slowdown.

She will give us more of a clue of what the fed thinks.

What do the markets want to hear from janet yellen?

They would like to hear a positive outlook for the economy and a confirmation that tapering is on the same schedule the fed had done before, that they do not have to worry about volatility in what the fed is doing.

They would like to have some clarification about the fed's forward guidance on the unemployment threshold given the fact that people receiving emergency benefits no longer are.

If a top-down of the -- if they dropped out of the workforce, we could hit that 6.5% by the end of the month.

They could say we will not raise rates long after the threshold is it.

How will they change the guidance if they do?

A lot of criticism.

It seems the fed is not that concerned about inflation.

What are you hearing?

It is still under the 2% threshold.

Real inflation is a concern.

He continues to drop.

Energy prices are falling.

We could see them get close to the area where they will worry.

There are people who say the next move will be to put in an inflation for flash old -- inflation floor threshold instead of just worrying about a ceiling.

The u.s. state department has

This text has been automatically generated. It may not be 100% accurate.

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